Asian stocks were mostly down today (September 21st) after the US Federal Reserve's decision to keep interest rates unchanged.
It said the decision was based on low inflation, weakness in the global economy and unsettled financial markets. Investors took this as a sign that the global economy is struggling.
"It's going to be a really tough week because we have the combination of [uncertainty] over what the People's Bank of China (PBOC) and the Fed wants. It seems that the Fed has moved the goalpost and that upset US markets on Friday," Adrian Mowat, MD and chief Asian and emerging market equity strategist at JP Morgan, told CNBC.
"We are [seeing] people closing out risk positions so you see the U.S. dollar weakening, [as well as] the yen and euro beginning to appreciate," he added.
Hong Kong's Hang Seng lost 0.7 per cent to 21,756.93 while the Shanghai Composite Index gained 1.9 per cent to 3,156.54. Sydney's S&P/ASX 200 was down two per cent to 5,066.20 and Seoul's Kospi fell 1.6 per cent to 1,964.68. Tokyo was closed for a holiday.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.